Historically Underutilized Business Zone(HUBZone)
An SBA program that gives preferential access to federal contracts for small businesses located in economically distressed areas.
Overview
The HUBZone program encourages economic development in historically underutilized business zones by giving certified small businesses preferential access to federal contracting opportunities. To qualify, a business must maintain its principal office in a HUBZone and employ at least 35% of its workers from HUBZone residents.
Why It Matters in GovCon
HUBZone certification is a powerful competitive advantage. The federal government has a statutory goal of awarding at least 3% of all federal contracting dollars to HUBZone-certified firms. This translates to billions of dollars in set-aside and sole-source opportunities each year.
Key Details
- Eligibility: Small business, principal office in a HUBZone, at least 35% of employees reside in a HUBZone, and owned/controlled by U.S. citizens.
- HUBZone Map: SBA maintains an interactive map at maps.certify.sba.gov showing qualified areas (including high unemployment areas, Indian lands, military base closures, and disaster areas).
- Price Preference: HUBZone firms receive a 10% price evaluation preference in full and open competitions.
- Set-Asides: Contracts can be set aside exclusively for HUBZone firms, and sole-source awards up to $4.5M (services) or $7M (manufacturing) are allowed.
- Recertification: Firms must recertify every three years and maintain compliance continuously.
How GovCon Data Can Help
Use GovCon Data to filter federal opportunities by HUBZone set-aside and track your pipeline of HUBZone-eligible contracts in the bid management dashboard.
Related Terms
- Small Business Administration (SBA)
- Set-Aside
- 8(a) Business Development Program
- Women-Owned Small Business (WOSB)
More Programs Terms
An SBA program that helps small businesses owned by socially and economically disadvantaged individuals compete for federal contracts.
A subcategory of WOSB for women-owned small businesses where the owners are also economically disadvantaged, eligible for additional sole-source contracts.
A program pairing large experienced contractors with small businesses to help them build capabilities through joint ventures, subcontracting, and technical assistance.
A small business at least 51% owned and controlled by one or more veterans with a service-connected disability, eligible for federal set-aside contracts.
A small business at least 51% owned and controlled by one or more women, eligible for federal set-aside contracts in underrepresented industries.
A government-to-government program where the U.S. sells defense articles and services to allied nations.
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